EUR/JPY gravitates towards weekly R3

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"We expect eurozone economic growth to regain pace in the second half of the year. Domestic fundamentals are looking increasingly positive. The outlook for exports should also brighten." 
- Nomura Securities (based on Reuters) 


Pair's Outlook 
Although the EUR/JPY declined towards the support cluster around 138.15, the pair was then pushed back up, which ultimately resulted in a rally. The Euro advanced only 14 pips against the Japanese Yen, but managed to pierce the weekly R3, which together with the Bollinger band is providing rather strong support. Even though technical studies retain their mixed signals, the single currency might still inch higher today and reach the 139.00 major level, rather than remaining flat with a slight shift to the downside.  

Traders' Sentiment 
Bearish SWFX traders' sentiment returned to its Tuesday's level of 55%. However, the percentage of buy orders increased substantially, namely from 49 to 73%.
© Dukascopy Bank SA

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